YEREVAN, September 25. /ARKA/. During a meeting on Thursday, the Armenian government sanctioned a proposal to enter into a €150 million loan agreement with the French Development Agency (AFD) as part of a budget support initiative.
As articulated by Finance Minister Vahe Hovhannisyan, the multi-year initiative, which has been in effect since 2019, seeks to enhance economic and financial governance, particularly by boosting the efficiency of public finance management and refining the planning and funding processes for transitioning to a low-carbon and sustainable economy.
The minister highlighted that the program encompasses three primary thematic areas:
1) enhancing the public financial management system to guarantee the effective and sustainable delivery of public services and infrastructure;
2) fortifying the framework for the issuance and management of government securities, along with the infrastructure of the money market;
3) creating new instruments for business financing and ensuring greater transparency in governance.
“The program is being executed in collaboration with the Asian Development Bank (ADB),” remarked Hovhannisyan.
As per the decision, the loan will be disbursed in a single tranche. The loan duration is set for 20 years, featuring a one-year grace period, with the principal repayable in 38 distinct semi-annual installments from 2026 to 2045.
About the French Development Agency
AFD (Agence Française de Développement) has been active in Armenia since 2013, engaging in projects that aid in combating climate change and facilitating a fair and inclusive transition. The agency operates in areas such as sustainable management and conservation of natural resources (irrigation, forests), urban infrastructure (transport, water supply, waste management, pollution control), energy transition (renewable energy, energy efficiency, and energy sector reform), and public financial management.-0-
